MGIC Investment (NYSE:MTG) Given New $28.00 Price Target at Barclays

Key Points

• Barclays cut its price target on MGIC to $28.00 (from $29.00) with an "equal weight" rating, while analysts' consensus is a "Hold" with a target of $28.25, implying only modest upside.
• MGIC reported Q1 EPS of $0.76 (beating estimates) but saw revenue decline 3% year-over-year to $297.1M (missing expectations), and the board authorized a $750 million buyback (up to 12.4% of shares).
• Insiders have been net sellers recently: the CEO sold 139,202 shares and the EVP sold 20,000, with insiders offloading 200,133 shares (~$5.34M) over the past 90 days.

MGIC Investment (NYSE:MTG - Get Free Report) had its target price dropped by Barclays from $29.00 to $28.00 in a report released on Friday,Benzinga reports. The firm currently has an "equal weight" rating on the insurance provider's stock. Barclays's price objective indicates a potential upside of 7.63% from the stock's previous close.

Several other analysts also recently issued reports on the company. UBS Group reduced their price objective on MGIC Investment from $29.50 to $28.00 and set a "neutral" rating on the stock in a research report on Thursday, March 12th. Weiss Ratings downgraded MGIC Investment from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Thursday, February 5th. Finally, Keefe, Bruyette & Woods upped their price objective on MGIC Investment from $28.00 to $29.00 and gave the company a "market perform" rating in a research report on Friday, April 10th. One analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $28.25.

MGIC Investment Price Performance

MTG traded down $0.46 during trading on Friday, reaching $26.02. 684,199 shares of the stock were exchanged, compared to its average volume of 2,154,969. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.52 and a quick ratio of 1.52. The company has a market capitalization of $5.59 billion, a price-to-earnings ratio of 8.28, a P/E/G ratio of 2.03 and a beta of 0.79. The business's 50 day moving average price is $26.86 and its two-hundred day moving average price is $27.49. MGIC Investment has a 1 year low of $24.77 and a 1 year high of $29.97.

MGIC Investment (NYSE:MTG - Get Free Report) last announced its earnings results on Wednesday, April 29th. The insurance provider reported $0.76 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.73 by $0.03. The company had revenue of $297.08 million during the quarter, compared to analysts' expectations of $303.12 million. MGIC Investment had a net margin of 59.63% and a return on equity of 13.93%. The firm's quarterly revenue was down 3.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.75 earnings per share. As a group, equities research analysts anticipate that MGIC Investment will post 3.08 earnings per share for the current year.

MGIC Investment declared that its board has authorized a stock buyback program on Thursday, April 23rd that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the insurance provider to purchase up to 12.4% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling

In related news, EVP Paula C. Maggio sold 20,000 shares of the stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $27.51, for a total transaction of $550,200.00. Following the transaction, the executive vice president directly owned 114,689 shares in the company, valued at approximately $3,155,094.39. This represents a 14.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Timothy J. Mattke sold 139,202 shares of the stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $26.49, for a total value of $3,687,460.98. Following the transaction, the chief executive officer owned 1,118,005 shares in the company, valued at $29,615,952.45. This trade represents a 11.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 200,133 shares of company stock worth $5,342,700. 1.34% of the stock is owned by company insiders.

Institutional Investors Weigh In On MGIC Investment

Several institutional investors and hedge funds have recently added to or reduced their stakes in MTG. Alpine Bank Wealth Management acquired a new stake in MGIC Investment during the third quarter worth about $28,000. Newbridge Financial Services Group Inc. acquired a new stake in MGIC Investment during the third quarter worth about $28,000. SBI Securities Co. Ltd. increased its stake in MGIC Investment by 61.1% during the third quarter. SBI Securities Co. Ltd. now owns 1,041 shares of the insurance provider's stock worth $30,000 after acquiring an additional 395 shares during the last quarter. V Square Quantitative Management LLC acquired a new stake in MGIC Investment during the fourth quarter worth about $36,000. Finally, Root Financial Partners LLC acquired a new stake in MGIC Investment during the third quarter worth about $38,000. 95.58% of the stock is currently owned by institutional investors and hedge funds.

About MGIC Investment

MGIC Investment Corporation NYSE: MTG is a leading provider of private mortgage insurance in the United States. Established in 1957 as the nation's first private mortgage insurer, MGIC helps lenders manage credit risk and facilitates homeownership by protecting mortgage loans against default. Headquartered in Milwaukee, Wisconsin, the company operates through its principal subsidiary, Mortgage Guaranty Insurance Corporation, and maintains relationships with a broad network of originators and servicers nationwide.

The company's primary business activity involves issuing mortgage insurance policies that enable borrowers to purchase homes with down payments below traditional lending thresholds.

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